Penske Automotive to buy GM

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According to a memorandum of understanding signed by thetwo companies, Penske will purchasr the rights to the brand, certain parts inventories and the rightg to distribute vehicles and parts througg Saturn’s dealerships. GM will continue to manufacture theSaturnj Aura, Vue and Outlook models on a interim basis, according to a news release. The deal is expectedr to close in thethird quarter. The release didn’t detail the termzs of the deal or how long GM will manufacturethe “We have agreed upon a frameworkm that we believe will build momentum for the Saturbn brand,” said Roger Penske, chairmann of Bloomfield Hills, Mich.
-based Penske Automotive, in the Saturn, founded by GM in 1990, has sold more than 4 milliom cars, according to the release. The brand, originally innovativ e in its approach to manufacturinhand marketing, was meant to be a pacesetterd for the rest of GM, but didn’tt live up to its promise. There are aboutr five Saturn dealerships in theCincinnati Detroit-based GM filed for Chapterf 11 bankruptcy Monday. It is reportedlyt in negotiations with a Chinese automaker to sell itsHummet brand, and it will discontinuse its Pontiac brand. Penskes Automotive (NYSE: PAG) sells new and used vehicles, insurance and financing.
It operates 310 retail automotive and 25 collisionrepair centers, representinhg 40 brands.